Delinquency Rates Likely to Temper in Second-Half 2019, Experian Says

The prime and super-prime loans that account for more than 60% of all outstanding auto loans will likely spur a decline in delinquency rates later this year, said Melinda Zabritski, Experian’s senior director of automotive financial solutions. “If the loan is going to go bad, it’ll occur typically around 16 to 18 months in, so […]

• Bianca Chan
• March 5, 2019
• Capital Markets, Credit Performance, Risk

How Frightening Are Subprime Auto Loans?

One of the lasting legacies of the financial crisis is the market’s tendency to take any sign of bad news and frame it in the context of 2008. Collateralized loan obligations, for instance, have been deemed scary because of similarities to the collateralized debt obligations that were riddled with bad mortgages. Now, auto loans are under the microscope. […]

• Bloomberg News
• February 20, 2019
• Capital Markets, Risk

Westlake Financial Aims for Another Year of Growth in 2019

Westlake Financial is shooting for 20% growth in 2019 on the heels of expansion of its direct lending platform and several other units, the lender announced last week. Westlake's portfolio shot up 35% last year, to a record $8.33 billion, with 40.5% of originations in the prime and near-prime credit tiers. Westlake Financial attributed some […]

• Joey Pizzolato
• February 12, 2019
• Earnings, Operations

LOS Provider Launcher Solutions Adds Alt Data From LexisNexis

Technology startup Launcher Solutions inked a deal last week to integrate alternative data from LexisNexis Risk Solutions into its loan-origination system geared for subprime lenders. Alternative data plays a significant role in auto loan underwriting, especially in the subprime sector where credit bureau profiles may be thin, Launcher Solutions President Nikh Nath told Auto Finance […]

• Bianca Chan
• January 8, 2019
• Risk, Technology

Fitch Forecasts Subprime Auto ABS to Weaken in 2019

While prime auto lease and loan asset-backed securitizations are projected to remain stable, Fitch Ratings Agency expects the outlook for subprime auto ABS to weaken. In a 2019 consumer lending outlook, Fitch’s Senior Director of ABS Ian Rasmussen said subprime auto asset-backed securities are more vulnerable due to weaker borrower profiles and industry headwinds inflated […]

• Bianca Chan
• January 4, 2019
• Archives, Credit Performance, Risk

How Lenders’ Response Time Influences Dealer Relationships

Automotive OEMs rate vehicle performance by the time it takes to go from zero to 60 in seconds. This is a measure of energy conversion – fuel, spark, movement. While this is a mechanical situation, a comparison can be made to business response times. While fuel is a potential auto loan customer, the spark is […]

• EFG Companies
• December 21, 2018
• Sponsored

Subprime Originations Expected to Grow in 2019 Despite Lender Caution, TransUnion Says 

Anticipated growth in originations to subprime borrowers is a sign that the auto industry is normalizing and will stay healthy in 2019, Brian Landau, senior vice president and TransUnion’s auto line of business leader, told Auto Finance News. Following a lender pullback from the subprime space in 2016 and 2017, subprime as a percent of […]

• Nicole Casperson
• December 12, 2018
• Credit Performance, Operations, Strategy

CPS Revamps Dealer Portal for Release in Early 2019

Subprime lender Consumer Portfolio Services is boosting dealer self-service options, with a revamped portal slated to debut early next year. “We’re rebuilding the dealer portal, so the dealer can go in and play around with the [loan] structure until he gets one that he likes, and we accept, without having to call a buyer and […]

• Monica Melton
• November 21, 2018
• Operations, Sales & Marketing, Technology